£10m of Start Up Loans supports hospitality businesses in the South West

Hospitality entrepreneurs across the South West have received a major funding boost through the British Business Bank’s Start Up Loans programme.

More than £10m of start up financing has gone to business owners in the sector, including mobile drinks vans, artisan bakeries, cafes, bistros and taphouses, helping to grow the region’s thriving hospitality sector, since 2012.

Overall, across all sectors the South West is one of the regions to have benefited the most from Start Up Loans with more than £100m of financing for start-up and early stage businesses.

Start Up Loans is a government-backed programme that helps budding businesses borrow up to £25,000 at a fixed 6% rate of interest, and benefit from hands-on free mentoring for one year. Since its launch in 2012, it has delivered over £100m in loans to more than 10,000 start-ups across the South West.

Louise McCoy, small business lending commercial managing director from the British Business Bank said: “The Start Up Loans programme continues to help entrepreneurs in the South West turn their skills and ideas into thriving hospitality businesses. By boosting access to finance in the region we’ve helped thousands of local enterprises take the next step in their business journey and unlock their potential.”

The following are three up and coming hospitality businesses in the South West which have benefitted from Start Up Loans:

The Acorn, Somerset
The Acorn café, bar and bistro situated in the heart of Yeovil was established by Chloe Widdows and Jim Thomson in 2023 to celebrate great local produce. They offer simple, quality food and drink in their all-day café alongside a range of deli produce including over15 cheeses from Somerset, Devon and Dorset.
Chloe and Jim always enjoyed sampling Somerset’s bounty of local produce, including cheeses and cider. They had often talked about the idea of opening their own deli to showcase the very best food and drink on offer in the area and after the pandemic, they decided to take the leap.
Chloe and Jim each applied for a £15,000 Start Up Loan to help them put down a deposit for a premises before getting to work on kitting out the building in Church Street.
It’s been a rewarding journey and one which they say would never have happened without the support of the Start Up Loan scheme and the British Business Bank.
Since opening, they have expanded their offering to a bistro service on Friday evenings, offering accessible high end seasonal British dining.
Chloe added: “One of the highlights of the past six months has to be our Supper Clubs, monthly events where we focus on a specific cuisine and offer a six-course tasting menu with wine pairings which have become highly anticipated in the local area and are always fully booked far in advance.”

Town Owl Taphouse, Gloucestershire

Town Owl Taphouse, an independently owned bar in Stroud, offers a relaxing social space and the very best local craft beers, wines and spirits. Opened in 2023 by husband-and-wife team Adam and Celia Pilmer, the duo received a Start Up Loan of £25,000 to get their long-held ambition off the ground.

Adam, a graphic designer, had always wanted to own his own bar and the couple realised there was a gap in the market in their Gloucestershire hometown. “There are so many great local microbreweries around the area, plus gin and whisky distilleries and local wines. We thought it would be a nice idea to create a place where people could come and drink them.”

The loan helped with the cost of a bar tap wall – one of the major focal points of the new venue – named after the poem the Town Owl by local poet and writer Laurie Lee.

“We couldn’t have done this without the Start Up Loan” said Celia. “It’s been a massive help. Having this money behind us has made a big difference. I would definitely recommend the scheme to other new businesses.”

Since opening, customers have been enjoying the quality and selection of craft beers on the rotating tap wall. The venue has also played host to fun weekend events including being part of Stroud Jazz Festival. They have just had their first Tap Takeover by Electric Bear Brewing which was a hit.

Glazed & Roasted, Cornwall

A vintage coffee and donut van, Glazed & Roasted has become one of the hottest venues in Cornwall.

Glazed & Roasted began as a side hustle for Leah Fontier and Jordan Jones, who were not only life-partners but also full-time colleagues at a hotel in Fowey. Having launched the business selling artisan coffee from a Piaggio Ape – a three wheeled truck – at weekend events, they were encouraged by their success to go one step further.

A cash injection in the form of a Start Up Loan allowed the couple to buy and renovate a larger 1957 Citroen HZ and kit out with coffee-making facilities, equip it with white goods including a fridge, and pay for stock and pitch fees.

Having been offered a plum position on the Camel Trail between Wadebridge and Padstow – which welcomes as many as 400,000 visitors annually – the Bodmin-based entrepreneurs handed in their notice in May and spent the summer refreshing cyclists and walkers while managing a steady stream of events bookings. At the end of September, they joined the BBC for the filming of Beyond Paradise, where the van was used as a prop and dressed up as The Ten Mile Kitchen in the historic Charlestown harbour.

Talking about the couple’s business journey, Leah said: “It’s scary but thrilling – the best thing we ever did. Without the loan, we would still be working full-time elsewhere – and it’s affordable to pay back.”